An Australian-based environmental company has paid $1.2 million to develop carbon trading projects in Papua New Guinea where no policy or legislation exists to facilitate such deals.

South Australian-based Carbon Planet, with offices across Australia and in London, promotes itself as a leading force in the global 'carbon economy'.

An Australian Securities and Investment Commission (ASIC) document obtained by AAP shows Carbon Planet's financial statement to the end of June 2008 reporting a $A1.2 million payment for development of carbon trading in PNG.

Carbon Planet chairman Jim Johnson refused to comment when asked by AAP about the funding in PNG.

"I've got nothing to talk about," he said.

"I am really sick of you people casting aspersions on my company.

"No payment has been made to PNG, your information is incorrect."

AAP read out ASIC's Carbon Planet statement which says: "Payments include $1.2 million of advanced funding on origination projects in PNG which the company expects to recoup in the 2009 financial year."

Johnson responded: "I am not explaining at all. I am not having this conversation," before hanging up.

PNG has the world's third-largest rainforest and the government has great interest in turning the asset into carbon trading revenue, but at present no such policy or legislation exists in PNG, nor under UN guidelines.